Many of Marin’s municipalities are making better progress toward meeting their housing supply goals than others in the state, according to a new report. But some appear to be performing well because they are working toward a low standard, the report states.

The report by Beacon Economics, issued Thursday and commissioned by the policy think tank Next10, grades each of the state’s 539 cities and counties on the progress they’ve made toward meeting California’s housing goals. The state’s Regional Housing Needs Assessment shows how much housing each region should to create in order to meet the projected needs associated with population growth. Regional agencies then allocate that need to each municipality.

The Association of Bay Area Governments has decided how much housing is needed for various income levels in each of Marin’s jurisdictions during the current cycle, which runs from 2015 to 2023. The Beacon report gives an update on how each municipality is doing.

Overall, Marin was given a B-plus in the report, which, along with Napa County, was the highest score in the Bay Area. But Marin’s housing goals are also the lowest in the Bay Area relative to its population, the report states. Marin has been asked to create enough new housing for 0.9 percent of its 2017 population. The Bay Area as a whole is expected to create enough new housing for 2.4 percent of its 2017 population, according to the report.

“When the bar is set low, it is not surprising that jurisdictions such as Marin and Napa perform well. … The housing allocation process is far from being equitable or adequate,” the report states. It argues for a better housing needs assessment process in order for the state to combat its housing crisis.

Mill Valley was the only Marin County jurisdiction to receive an A-plus in the report, which collected data through 2017. With six years left in its current cycle, the city at the end of 2017 had already permitted 18 of the 41 needed homes for very low-income residents. It had permitted 20 of the 24 needed low-income homes, 11 of 26 needed moderate-income homes and 18 of 38 above-moderate-income homes.

Patrick Kelly, director of the city’s planning and building departments, said the good score is likely a result of more homeowners building accessory dwelling units, or ADUs, which create affordable housing.

But the city is still lacking in high-density housing in some areas which are zoned for it, he said. As a result, many housing advocates say Mill Valley needs to do more.

“Mill Valley is a relatively smaller city compared to most California cities, and a few units will spike the growth rate here,” he said. “I think there’s expectations from some affordable housing advocates that much more be done to meet the need in the community.”

The report awarded Tiburon a C, which was the lowest grade in the county. Between 2015 and 2017, the town didn’t permit any homes for the three lowest income levels. During this cycle, the needs assessment says Tiburon needs to create 24 homes for very low-income residents, 16 for low-income and 19 for moderate-income. The town permitted 11 of the needed 19 homes for above moderate-income residents.

Sung Kwon, Tiburon’s community development director, said the town encourages residents to build ADUs as a way to create more housing for low-income residents. But that encouragement isn’t always well-received.

“There’s really no economic need for most of our residents to build ADUs,” he said. “In other communities, an ADU can be helpful as another form of income. But here, not a lot of our residents need that.”

Subcontractors work on a project in the Hamilton area of Novato on Friday. (Jeremy Portje/ Marin Independent Journal)

Overall, he said, housing growth is difficult for Tiburon.

“It’s mostly a low-density residential community and there’s just not a whole lot of land left,” he said.

Novato, which received a B-minus, and San Rafael, which received a C-plus, were also among the lowest-scoring cities in Marin. But they are expected to create a far higher number of homes than the rest of the county is. Novato permitted 80 of the needed 415 homes across all income levels between 2015 and 2017. San Rafael permitted 191 of the needed 1,007 homes.

Corte Madera, which received an A, permitted 204 homes across all income levels and only needed 72. But 179 of those were for above moderate-income residents. The town hit its target for low-income housing, but has only permitted seven of the needed 22 homes for very low-income residents and five of the needed 13 homes for moderate-income.

Statewide, the report painted a bleak picture. Across all income levels, only 25.9 percent of the needed housing has been permitted.

Adam Fowler, Beacon’s research director, said the lack of progress could have dire economic consequences.

“Economic growth over the next decade is going to be really contingent on the ability to house workers,” he said. “Coming out of the Great Recession, California has been a real superstar in terms of our economic growth across a number of industries. … The problem is that if we don’t streamline our ability to build out and supply housing for that growth, it’s going to become constrained.”